Cenvat

The government today said the Union Budget for next fiscal would look into the various problems being faced by companies under their Central Value Added Tax (Cenvat) credit claims. Cenvat rate is currently fixed at 10 per cent and companies get credi Full Article

Value Added Tax was introduced in Indian tax structure way back in 2003 and even today not every state has implemented this tax. Small and medium enterprises (SME) have also not been well settled with VAT law and our government has taken over the task of introducing new statutes for implementation of Goods and Services tax. Full Article

Government proposes to come out with standard input and output norms for service tax and excise Official sources said such norms form the benchmark of costing, which helps in working out the price of inputs required for manufacturing or producing a certain quantity of output. This is important, since most business entities or companies claim refund or get Cenvat (central value added tax) credit for the value of inputs used in producing the output. Full Article

So far, VAT at the state or Cenvat at the central level, along with services tax, have been major steps in tax reforms. Before the present tax regime, there was the sales tax regime, where there was a cascading effect on tax. VAT has removed this burden, but it had deficiencies. The Cenvat load remains. There were several state taxes which were not subsumed in any one tax. The inter-state sales tax or CST was not fully relieved. Full Article

When the goods are retuned in the factory in different situations, the assessee is faced with the problem as how to take credit on the returned goods. The problem has been compounded by various trade notices saying different things. Some of the trade notices have prescribed new conditions amounting to the legislation of rules. This paper is an attempt to simplify the issue as per the position of law. Full Article

The UPA is back at a time faced with economic slowdown and hence, an immediate agenda of economic revival. The Small & Medium Enterprises (SME) is one of the high growth sector with over 40% contribution to the industrial production. Given the high potential of SMEs to develop entrepreneurial skills, generate employment as well as [...] Full Article

Manner of Scrutiny of ER1, ER2 and ER3 returns and returns submitted by Dealers by the proper officer  (Circular No. 887/07/2009- CX, dated 11-5-2009) These guidelines supersede the earlier instructions issued vide Circular No.818/15/2005- CX from F.No.224/1/2005- CX.6 dated 15th July, 2005 and Circular No.249/83/96- CX issued from F.No.206/1/96- CX.6 dated 11.10.96.  These guidelines seek [...] Full Article

OFFICE OF THE COMMISSIONER OF CENTRAL EXCISE::  MADURAI-625 002.  Trade Notice No.  14 /2009       Dated:   13.03.2009.      Service Tax No.     6 /2009 Sub:- Service Tax – Utilisation of accumulated CENVAT credit restricted in terms of erstwhile Rule 6(3)( c) of CENVAT Credit Rules, 2004 – Regarding.  The issue of restriction of utilisation of accumulated CENVAT credit in [...] Full Article